Artificial Intelligence to Help Healthcare System Cut Costs

Pittsburgh Tribune ReviewJuly 11, 2016 University of Pittsburgh Medical Center (UPMC) is partnering with IBM in a high-tech effort to reduce the $2 billion per year the hospital system spends on supplies. After labor, supply chain is UPMC’s biggest expense each year, said James Szilagy, CEO of the joint venture christened Pensiamo, which is Italian for “we think.” Szilagy formerly was chief supply chain officer at UPMC. Using IBM’s artificial intelligence system, known as Watson, Western Pennsylvania’s largest health care system will look to increase efficiency in everything from selecting surgical devices to contracting for snow removal services, Szilagy said. The venture also is offering its services to other hospitals as part of the nonprofit’s portfolio of commercial endeavors known as UPMC Enterprises. At UPMC, which has about $12 billion…